The global market for five key energy technologies electric vehicles, electrolysers, heat pumps, solar photovoltaic systems, and wind turbines is projected to surge to approximately US$2.1 trillion by 2035, according to the latest World Energy Transitions Outlook 2024 published by the International Renewable Energy Agency (IRENA). The report indicates that this projected growth, nearly tripling the current market size, underscores the accelerating shift toward low-carbon energy solutions worldwide.
Among the most dynamic areas identified in the report is carbon dioxide removal, which has seen a sevenfold increase in startup activity over the past decade. More than 140 companies are now actively developing technologies to remove carbon from the atmosphere. Currently, approximately 30 carbon capture and storage facilities operate across Europe, North America, Japan, and the Middle East. While most of these are small-scale, only five facilities are capable of capturing more than 1,000 tonnes of carbon dioxide annually.
Despite this, their collective capacity surpasses 17,000 tonnes per year. The commercial application of captured carbon, including sales and storage agreements, remains limited. Highlighting innovation in the Middle East, IRENA pointed to a notable initiative in the UAE. In 2024, ADNOC and carbon removal startup 44.01 completed a pilot project in Fujairah that permanently stored 10 tonnes of carbon dioxide by converting it into rock in less than 100 days.
This venture is considered a leading example of scalable carbon removal technologies in the global energy transition. The report also recorded a steady increase in public funding for energy research and development, with global investment reaching US$50 billion in 2023 up five percent from the previous year. IRENA projects continued growth in 2024 and beyond, driven by sustained government and private sector commitments. Preliminary figures for 2024 suggest a slowdown in public R&D investment growth in the United States and Canada.
Conversely, Japan and Norway are seeing substantial increases. Japan’s Green Transformation initiative is bolstering battery technology competitiveness, while Norway is expanding funding for hydrogen and renewable energy projects. Private sector contributions have also accelerated, with corporate energy R&D spending growing at three times the pace of member nations’ GDP. Leading this investment trend are automotive manufacturers, who represent 13 of the 20 largest companies by energy-focused R&D expenditure, highlighting the sector’s critical role in shaping the future of clean technology. – By MENA Newswire News Desk.